Funding is one of the biggest problems entrepreneurs face in Nigeria. Though, there are avenues through which small businesses can access funds, it still remains a rigorous process. Before any venture capitalist or finance foundation gives you fund you must have known the efforts you already put in place.
As a small business owner who is looking for funds, you must have done your primary assignment. Your business must be viable and prospective enough, with a solid business plan. Your bank statement and financial records must be top-notch. While your vision and mission must be clearly understood.
Without much ado, here are some of the agencies or foundation you could approach for funds:
BoI Funds
The BoI has a number of funds that entrepreneurs of all levels can access. First is the Graduate Entrepreneurship Fund (GEF), which is meant for serving members of the National Youth Service Corps (NYSC).
Candidates are allowed to submit their business ideas, which are then reviewed by a team of experts. The NYSC members whose ideas are marketable and bankable are then selected, trained for four weeks and then given between N500, 000 and N2 million.
In fact, the bank has other matching and managed funds, including a fund for the automotive industry. Through 122 business development experts, the bank makes it easy for entrepreneurs to undergo the process of de-risking before approaching the bank for funds.
Tony Elumelu Foundation
The foundation has $100 million for 10,000 African entrepreneurs. If you are in agriculture, fashion and design, light manufacturing, ICT, and solid minerals, among others, then apply for the on-going Tony Elumemu fund. You can be lucky to be one of 1,000 entrepreneurs to be shortlisted. Many entrepreneurs will get $5,000 or more as grants or loans.
World Bank Grants
The World Bank provides millions of dollars for SMEs.The bank has a $160 million Growth and Employment in States (GEMS) funds for small businesses in Nigeria, which is yet to be fully disbursed. As of September 2018, only N3.7 billion of this money had been disbursed.
GroFin Fund
GroFin, a development financier, has committed over $500 million to fund Nigerian micro, small and medium business (MSMEs) across the country.
The firm has five different types of funds: the Aspire Nigeria Fund, the Growth Africa Fund, the Small Growing Business Fund, the Aspire Small Business Fund and the Aspire Growth Fund.
The Aspire Nigeria Fund, the Growth Africa Fund, and the Small Growing Business Fund cater to all parts of Nigeria except the Niger Delta.
The Aspire Small Business Fund provides a minimum of $100,000 and a maximum of $1.5 million to SMEs in Nigeria.The Aspire Small Business Fund and the Aspire Growth Fund cater to the Niger Delta.
The Aspire Small Business Fund provides between $10,000 and $100,000 to small business owners in the oil-rich region, while the Aspire Growth Fund frees between $100,000 and $3 million to businesses to stimulate growth in the area. GroFin provides its funds mostly for a maximum of six years.
AYEEN Financial Grants
Africa’s Young Entrepreneurs Empowerment Nigeria (AYEEN) allows entrepreneurs to pitch their business ideas before a panel. The panel assesses each entrepreneur and decides whether to provide financing for the business.
Hundreds of entrepreneurs walk away annually with various degrees of business funding and other forms of empowerment from various types of investors.
LSETF Loans
The Lagos State Employment Trust Fund (LSETF) has N25 billion to support SMEs. Though it was commenced by the previous administration, Sanwo-Olu, Governor of Lagos State, has assured that the scheme will continue owing to the impact it has made on the people of the state.
The fund is divided into two categories; micro and small businesses. Under the micro, businesses can access up to N500, 000 loans with an interest rate of five percent and a tenor of one year.
For the small business category, businesses can get up to N5 million for a tenor of three years. The criteria for accessing the funds include membership of a business organization, which will recommend the business for the loan; Lagos State tax receipt for at least six months, and Lagos state residency card. This takes three weeks for processing.